Other Asian, Australian and South Pacific Frequent Flyer Programs - Air Australia goes bust

Thousands left without flights
300 Air Australia staff stood down
Company unable to pay for fuel
Questions about when the company went broke
No flights in the 'short to medium term'
Turbulence that brought down an airline
No way home as passengers wait on news
Matt O'Sullivan's analysis: Customers jettisoned again

It will take days for the 4000 people stranded by the collapse of Brisbane-based budget carrier Air Australia to make their own way home. The airline went into administration today.

Many passengers will arrive over the weekend but even with Qantas, Jetstar and other airlines helping out, some are unlikely to make it back until early in the week.

Read more:
http://www.smh.com.au/travel/travel-news/passengers-stranded-for-days-as-air-australia-goes-bust-20120217-1tcln.html#ixzz1mcpLWMft

Really no surprise... as soon as they left the military/charter market I knew they were gonna get slaughtered.

They're trying to make money in the leisure market (HKT/HNL) which have notoriously low yields, but without:

1. Low cost structures such as Air Asia
2. Really packing the seats in tight such as Air Asia

Recipe for disaster...

There was an Air Australia?

Moving thread to the FT Travel News Forum.
Obscure2k
TravelBuzz Moderator

There was an Air Australia?

I think it went under the name Strategic Air. They just started operating last year I believe. They had pretty low fares out of Brisbane.

And per http://www.flyertalk.com/forum/travel-news/1184086-welcome-travel-news-what-should-posted-here-what-should-posted-elsewhere.html, since this is an airline-specific story, after its brief sojourn here I am moving to the appropriate airline forum while leaving a 30-day-redirect here for those interested.

cblaisd
Moderator, Travel News forum

There was an Air Australia?

Yes, this is Air Australia. Unfortunately, it was very disappointed the news. They didn't have enough financial. They're still losing the money all of the time. They couldn't have a survive for any much longer.

Yes, this is Air Australia. Unfortunately, it was very disappointed the news. They didn't have enough financial. They're still losing the money all of the time. They couldn't have a survive for any much longer.

Pleaded desperately to be reinstated after a number of insurerers removed insolvency cover for them late last year.

Seems the fears were well grounded.

Sad for those stranded, and another blow for the industry here.

But again, as soon as they rebranded, I thought to myself "this isn't gonna last long"...

I think it went under the name Strategic Air. They just started operating last year I believe. They had pretty low fares out of Brisbane.

What was the strategy? How ironic?!;)

LAX

o well. :confused: